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Customer Relationship Management and Electronic Medical Records

Customer Relationship Management and Electronic Medical Records: How the Medical

Industry is Transforming from Paper to Electronic Records

Prepared by: Hung Winn, M.D.

N. Renee' Ross

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IS6800 December 2004

December 2004

Customer Relationship Management and Electronic Medical Records

Table of Contents

Executive Summary.................................................................4 Introduction..........................................................................5 A New Direction....................................................................6 Customer-centric Focus............................................................7 A Snapshot View...................................................................8 Leading the Way....................................................................8 The Bottom Line...................................................................9 Why Implement?...................................................................9 Watch Out!..........................................................................10 CRM ? Not just for the Corporate Sector.......................................10 EMR ? Public and Private Initiatives............................................11 UMHC ? A front Runner in Electronic Health Information.................12 MU School of Medicine .........................................................12 MU Health Care - Overview.................................................... 12 MU Health Care ? Launching Electronic Clinical Information.............13 MU Health Care ? Implementing Electronic Clinical Information ........13 MU Health Care ? Accomplishments in Establishing ECI ..................14 Health Insurance Portability and Accountability Act ........................14 Cerner Corporation ? an Essential Partner.....................................15

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Customer Relationship Management and Electronic Medical Records

MU Health Care's goals for ECI ...............................................14 EMR - Timely Availability of Clinical Information.........................15 EMR Reduces Medical Errors ..................................................16 EMR Makes the Medical Practice More Efficient and Effective............16 EMR Increases Revenues and Reduces Cost ................................17 Conclusions....................................... ................................18 References......................................................................... 18 Appendix A........................................................................21. Appendix B........................................................................22. Appendix C........................................................................23. Appendix D........................................................................26.

IS6800

December 2004

Customer Relationship Management and Electronic Medical Records

Customer Relationship Management and

Electronic Medical Records: How the Medical Industry is Transforming from Paper to Electronic

Records

Hung Winn, M.D. N. Renee' Ross

Implementing CRM methodology in the Medical Industry can minimize errors and increase patient satisfaction

EXECUTIVE SUMMARY

Customer Relationship Management (CRM) is increasing in popularity for a variety of reasons, including increased customer service levels, improved efficiency of call centers, simplified marketing processes, and increased ROI. Managers realize that customers are the heart of business success and are eager to realize the benefits a successful CRM implementation can deliver. CRM helps businesses use technology and human resources to gain insight into the behavior and value of customers.

With such focus on CRM, we first examine the definition of CRM. CRM is "any application or initiative designed to help an organization optimize interactions with customers, suppliers, or prospects via one or more touch points." 1 By enabling organizations to manage and coordinate customer interactions across multiple channels, departments and geographies, CRM helps companies maximize the value of every customer interaction and achieve improved corporate performance.

The market for CRM is estimated by Gartner to be between $30 million and $90 million over a 3-year period. Spending in 2001 equaled $8.8 billion and projections for 2005 are estimated at a shocking $30.6 billion. 12 Regardless of the massive spend associated with CRM, many businesses underestimate CRM costs by 40%-75%. Hidden costs are often found in the areas of:

? Project Management ? Software Integration ? Data Maintenance ? Training

However, despite the tremendous potential and proven ROI, industry surveys say that as many as 60 percent of CRM solution implementations fail the first time. Close examination of best practices from CRM successes and characteristics of failed CRM projects show that CRM can be highly effective, but must be implemented in a strategic, focused, and highly regarded manner that leads to success.

In determining if an organization is ready, you should consider if you have buy-in from all of the organization groups involved, and whether or not they understand their roles. In order to use CRM successfully, a company needs to have a CRM-focused vision. This means more than simply having one company department focus on CRM. It

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Customer Relationship Management and Electronic Medical Records

means having the company's mission statement, strategies, goals and expectations all focused on CRM.

80% of organizations report success with CRM solutions

Findings from prior CRM implementations reveal the following best practices:

? Vision / Strategy ? Clearly defining what success will look like and what initiatives will drive the desired results

? Knowing your Customer ? Survey your customer to truly understand what the customer wants

? Differentiate ? Segment your customers based on their habits, behaviors and profitability

? Technology / Data Requirements ? Know what customer information is vital to successful implementation and what system the information will come from

? Metrics ? Establish metrics and goals up front. The up-front commitment to metrics leads to quick resolution of problems and allows accurate tracking of progress

? Monitor ? Monitor the progress, obtain feedback from the customer. This is essential to develop or revise a CRM strategy

This paper describes CRM through definitions, best practices, lessons learned and a review of CRM industry leaders. It reveals the managerial tactics associated with each area and additionally examines the dynamics of a case study in the medical industry. The purpose of this paper is to

provide executive leadership an overview of CRM and show how others in the medical industry can follow suit and realize benefits of a CRM implementation.

Research for this paper includes a review of previous publications on the topic of CRM as well as one of the author's personal knowledge and interviews with various individuals at MU Healthcare. The focus of the interview was on CRM initiatives and their relationship to competitive strategy.

Electronic Clinical Information (ECI) or EMR demonstrates the application the synergy of IT and CRM in modern health care. Electronic Medical Records (EMR)'s benefits outweigh the high expenses associated with launching such a system. It can improve quality of care by making the information available at the right time and place of care, reducing medical errors, and improving the coordination of care. It improves health care providers' professional lives by providing a more efficient and effective working environment and lessening professional liability. Finally, it improves the hospitals and physicians' financial performance through more effective and efficient billing and collections, reducing medical errors and professional liability. The health care system's best benefit involves retaining and recruiting more satisfied and gratifying customers: patients, physicians and other health care providers.

INTRODUCTION

Customer relationship management initiatives can be found at almost any organization at some level. Recently, CRM solutions are making way into the medical industry. While this is not the typical CRM solution, implementing modern information

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